In Rev. proc. 2022-12the IRS has prescribed procedures for persons who are not otherwise required to file a federal income tax return for 2021 to do so to claim, if eligible, the Child Tax Credit (CTC), the credit Recovery Reimbursement (RRC) and/or Earned Income Tax Credit (EITC).

Most taxpayers are not required to file a return when their adjusted gross income (AGI) is less than the applicable standard deduction amount (for 2021, if not dependent on another taxpayer, 12,550 $ for single filers or married filers filing separately, $25,100 for those filing married filing jointly or as an eligible widow(er), or $18,800 for heads of families, with additional amounts for taxpayers of all filing statuses who are over 65 and/or blind).

However, in many cases, a taxpayer who is not required to file may take advantage of it, for example to obtain a refund of taxes withheld from wages or, as provided for in this tax procedure, to receive the refundable credit amounts to which the taxpayer is entitled.

The tax procedure covers three types of taxpayers not required to file a return: (1) those who had zero AGI for 2021; (2) those whose AGI was less than the applicable standard deduction and who were not eligible or did not wish to benefit from the EITC; and (3) those whose AGI was less than the applicable standard deduction and who had earned income for EITC purposes (and wish to claim it).

Zero AGI procedure

Taxpayers without AGI may have difficulty filing a return electronically, as tax software usually expects a certain amount. The income procedure gives them a workaround: in addition to all the other information that needs to be entered on the 1040 form, U.S. personal income tax filing (or Form 1040-SR, U.S. tax return for seniorsor Form 1040-NR, Tax filing for non-resident aliens in the United States), the taxpayer must enter $1 as taxable interest on line 2b, $1 as total income on line 9 and $1 as AGI on line 11.

CTC/DRR procedures

Filers whose AGI for 2021 was less than the applicable standard deduction and who apply for CTC and/or RRC but not EITC can file electronically or with a paper return. These taxpayers must enter “Rev. proc. 2022-12” above the documents printed at the top of page 1 of the statement. (It is not specified if or how they can do this on an electronic declaration.)

They must also provide other information, leave certain lines blank, and may provide certain other information, all as specified in the tax procedure. Those applying for a CTC must include information about the dependents for whom the CTC is being claimed. They can request direct deposit of the refund but cannot split it between accounts. These procedures apply to returns filed after April 18, 2022.

CTC/RRC/EITC procedures

Filers whose AGI is less than the applicable standard deduction and claiming any of the credits, including the EITC, can also submit the declaration electronically or on paper. These are taxpayers who have earned income but no other income that must be reported on line 1. They must also write “Rev. Proc. 2022-12” above the document printed at the top of page 1 and provide certain specified information, including dependents for whom the EITC (and CTC, if applicable) is requested, leave some lines blank, and optionally provide other information. They must enter $0 as taxable income.

If they have children eligible for the EITC, they must also include or attach the EIC Annex, Earned income credit, with information about these children. They cannot use income earned in 2019 to calculate the credit, a special rule otherwise available for 2021. These taxpayers can also request direct deposit of the refund, but cannot allocate it between accounts. These procedures also apply to returns filed on or after April 18, 2022.

All taxpayers

All methods require registrants, as with all declarations, to sign the declaration under penalty of perjury. Those who received an Identity Protection Personal Identification Number for 2021 must use it. A “simplified return” under the procedures for CTC/RRC or CTC/RRC/ETC applicants is a federal income tax return for all purposes.

— To comment on this article or suggest an idea for another article, contact Paul Bonner at [email protected].